Waxman et al. v. Waxman et al., [2002] O.T.C. 443 (SC)

• Judge: Sanderson, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: December 07, 1998
• Jurisdiction: Ontario
• Citations: [2002] O.T.C. 443 (SC)

Waxman v. Waxman, [2002] O.T.C. 443 (SC)

MLB headnote and full text

Temp. Cite: [2002] O.T.C. TBEd. JL.008

Morris Waxman and Morriston Investments Limited (plaintiffs) v. Chester Waxman, Chester Waxman, in trust, Chesterton Investments Limited, Robert Waxman, Gary Waxman, Warren Waxman, I. Waxman & Sons Limited, the Greycliffe Holdings Limited Robix Financial Corporation Limited, Circuital Canada Inc., RKW Standardbred Associates Inc., RKW Standardbred Management Inc., and Glow Metal Trading Inc. (defendants)

I. Waxman & Sons Limited and Chester Waxman (plaintiffs by counterclaim) v. Morris Waxman, Michael Waxman, Shirley Waxman, Douglas Waxman, the Waxman Holding Corporation Inc., Morriston Investments Limited, Solid Waste Reclamation Limited, Solid Waste Reclamation Inc. and General Environmental Technologies Corporation (defendants to counterclaim) (33234/88)

Morris Waxman (plaintiff) v. I. Waxman & Sons Limited (defendant)

(36583/89)

Morris Waxman, Michael Waxman and Solid Waste Reclamation Limited (plaintiffs) v. Chester Waxman, Robert Waxman, Gary Waxman and I. Waxman & Sons Limited (defendants)

Chester Waxman, Warren Waxman, Robert Waxman, Gary Waxman, Brenda Halberstadt and I. Waxman & Sons Limited (plaintiffs by counterclaim) v. Morris Waxman, Michael Waxman, Douglas Waxman, Solid Waste Reclamation Limited and the Waxman Holding Corporation Inc. (defendants to counterclaim)

(37616/89)

Morris Waxman and Morriston Investments Limited (plaintiffs) v. Paul Ennis, Q.C. and Ennis & Associates (defendants)

(42114/89)

Morris Waxman and Morriston Investments Limited (plaintiffs) v. Taylor Leibow, Wayne Linton and I. Waxman & Sons Limited (defendants)

(44142/89)

Indexed As: Waxman et al. v. Waxman et al.

Court of Ontario

Superior Court of Justice

Sanderson, J.

June 27, 2002, September 14, 2002 and September 16, 2002.

Summary:

This headnote contains no summary.

Barristers and Solicitors - Topic 1548

Relationship with client - Duty to client - General - Fiduciary duty - See paragraphs 2211 to 2618.

Barristers and Solicitors - Topic 2594

Negligence - Particular negligent acts - Failure to inform or advise client - See paragraphs 2211 to 2618.

Barristers and Solicitors - Topic 2600

Negligence - Particular negligent acts - Failure to protect client's interests - See paragraphs 2211 to 2618.

Company Law - Topic 2170

Shareholders - Shareholders' rights - To rectify oppressive or unfairly prejudicial act - See paragraphs 1366 to 1468.

Company Law - Topic 2170.1

Shareholders - Shareholders' rights - Oppressive acts - Remedies - See paragraphs 1628 to 1647.

Company Law - Topic 9781

Actions against corporations and directors - Action for oppressive conduct - When available (incl. time for) - See paragraphs 1366 to 1468.

Company Law - Topic 9783

Actions against corporations and directors - Action for oppressive conduct - Persons entitled - See paragraphs 1370 to 1375.

Company Law - Topic 9785

Actions against corporations and directors - Action for oppressive conduct - Oppression - Prejudice or disregard of interests - See paragraphs 1405 to 1468.

Contracts - Topic 3739

Performance or breach - Fundamental breach - Waiver of breach or affirmation of contract - See paragraphs 1475 to 1501.

Damage Awards - Topic 695

Torts - Injury to economic or business relations - General - See paragraphs 1783 to 1811.

Damage Awards - Topic 2030.5

Exemplary or punitive damages - Breach of fiduciary duty - See paragraph 1706.

Damages - Topic 1309.1

Exemplary or punitive damages - Breach of confidence or fiduciary duty - See paragraphs 1656 to 1664.

Equity - Topic 1006

Equitable relief - General - Accounting of profits - See paragraphs 1648, 1649 and 1665 to 1705.

Equity - Topic 1007

Equitable relief - General - Tracing - See paragraphs 1652 to 1655.

Equity - Topic 1106

Equitable relief - Contracts - Rescission - When available - See paragraphs 1625 to 1627.

Equity - Topic 1122

Equitable relief - Contracts - Unconscionable bargain - Unconscionable bargain defined - See paragraphs 1351 to 1365.

Equity - Topic 1482

Equitable principles respecting relief - Clean hands doctrine - Application of - See paragraphs 1505 to 1509.

Equity - Topic 2002

Equitable defences - General - Application of - See paragraphs 1502 to 1523.

Equity - Topic 3606

Fiduciary or confidential relationships - General principles - What constitutes a fiduciary relationship - See paragraphs 1208 to 1295.

Equity - Topic 3615

Fiduciary or confidential relationships - General principles - Spousal or family relationships (incl. closely held companies) - See paragraphs 1208 to 1295.

Equity - Topic 3646

Fiduciary or confidential relationships - Breach of fiduciary relationship - By director or officer of company - See paragraphs 2119 to 2138.

Equity - Topic 3647.1

Fiduciary or confidential relationships - Breach of fiduciary relationship - By former business partner - See paragraphs 1208 to 1295.

Equity - Topic 3653.1

Fiduciary or confidential relationships - Breach of fiduciary relationship - By accountant - See paragraphs 2342 to 2589.

Equity - Topic 3654

Fiduciary or confidential relationships - Breach of fiduciary relationship - Remedies - See paragraphs 1614 to 1619.

Equity - Topic 3713

Fiduciary or confidential relationships - Commercial relationships - Arm's length commercial transactions - See paragraphs 1208 to 1295.

Evidence - Topic 1527

Hearsay rule - Hearsay rule exceptions and exclusions - General - Where admission of hearsay necessary and evidence reliable - See paragraphs 2619 to 2678.

Fraud and Misrepresentation - Topic 603

Undue influence - General principles - What constitutes undue influence - See paragraphs 1331 to 1349.

Fraud and Misrepresentation - Topic 606

Undue influence - General principles - Remedies - See paragraph 1624.

Fraud and Misrepresentation - Topic 784

Undue influence - Presumed undue influence - General - Circumstances which raise presumption - See paragraphs 1331 to 2618.

Fraud and Misrepresentation - Topic 826

Undue influence - Presumed undue influence from special relationships - Nonparental family relationships - See paragraphs 1331 to 2618.

Master and Servant - Topic 8000

Dismissal without cause - Notice of dismissal - What constitutes reasonable notice - See paragraphs 2181 to 2200.

Professional Occupations - Topic 1468

Accountants - Negligence - Audit - General - See paragraphs 2342 to 2589.

Restitution - Topic 8003

Defences - General - Change of position - See paragraphs 1524 to 1529.

Torts - Topic 49

Negligence - Standard of care - Particular persons and relationships - Accountants - See paragraphs 2342 to 2589.

Torts - Topic 5208

Interference with economic relations - Contracts - Inducing or procuring breach of contract - See paragraphs 1711 to 1782 and 1812 to 2179.

Trusts - Topic 2308

Constructive trusts - General principles - Circumstances when imposed - See paragraphs 1650 to 1651.

Trusts - Topic 2344

Constructive trusts - Basis for imposition - Breach of confidence or fiduciary relationship - See paragraphs 1650 to 1651 and 1665 to 1705.

Trusts - Topic 2351

Constructive trusts - Basis for imposition - Where stranger knowingly or dishonestly participates in breach of trust - See paragraphs 1296 to 1331.

Trusts - Topic 2768

The beneficiary - Remedies on breach - Tracing - When available - See paragraphs 2679 to 2751.

Trusts - Topic 4181

Administration - Remedies of beneficiaries and others - General - See paragraphs 1620 to 1623.

Cases Noticed:

Marvco Color Research Ltd. v. Harris, [1982] 2 S.C.R. 774; 45 N.R. 302, refd to. [para. 1202, footnote 439].

Norberg v. Wynrib, [1992] 2 S.C.R. 226; 138 N.R. 81; 9 B.C.A.C. 1; 19 W.A.C. 1, refd to. [para. 1209, footnote 441].

Hodgkinson v. Simms et al., [1994] 3 S.C.R. 377; 171 N.R. 245; 49 B.C.A.C. 1; 80 W.A.C. 1; 117 D.L.R.(4th) 161, refd to. [para. 1211, footnote 442].

International Corona Resources Ltd. v. LAC Minerals Ltd., [1989] 2 S.C.R. 574; 101 N.R. 239; 36 O.A.C. 57; 61 D.L.R.(4th) 14, refd to. [para. 1212, footnote 443].

Olson v. Gullo Estate (1994), 71 O.A.C. 327; 17 O.R.(3d) 790 (C.A.), refd to. [para. 1214, footnote 445].

Hogar Estates Ltd. (In Trust) v. Shebron Holdings Ltd. et al. (1979), 101 D.L.R.(3d) 509 (Ont. H.C.), refd to. [para. 1214, footnote 445].

Frame v. Smith and Smith, [1987] 2 S.C.R. 99; 78 N.R. 40; 23 O.A.C. 84, refd to. [para. 1225, footnote 448].

Weiss v. Schad, [1999] O.T.C. 228 (Sup. Ct.), refd to. [para. 1251, footnote 452].

Beamish et al. v. Solnick et al. (1980), 10 B.L.R. 224 (Ont. S.C.), refd to. [para. 1254, footnote 453].

MacDonald Estate v. Martin - see MacDonald Estate, Re.

MacDonald Estate, Re (1993), 89 Man.R.(2d) 123 (Q.B.), revd. in part (1994), 95 Man.R.(2d) 123; 70 W.A.C. 123 (C.A.), refd to. [para. 1254, footnote 453].

Gregoric v. Gregoric (1990), 4 O.R.(3d) 588 (Gen. Div.), refd to. [para. 1256, footnote 454].

Coleman v. Myers, [1977] 2 N.Z.L.R. 298 (C.A.), refd to. [para. 1257, footnote 455].

Dusik v. Gooderham, [1985] B.C.J. No. 18 (C.A.), refd to. [para. 1260, footnote 456].

Bell and Stewart v. Source Data Control Ltd. and Hood et al., [1986] O.J. No. 621 (H.C.), affd. (1988), 29 O.A.C. 134; 53 D.L.R.(4th) 580 (C.A.), refd to. [para. 1261, footnote 457].

Maddeford v. Austwick (1826), 57 E.R. 512, refd to. [para. 1266].

Ferguson v. Mackay, [1985] S.L.T.(O.H.) 94 (Scot.), refd to. [para. 1267].

Brant Investments Ltd. et al. v. KeepRite Inc. et al. (1991), 45 O.A.C. 320; 80 D.L.R.(4th) 161 (C.A.), refd to. [para. 1294, footnote 461].

Gold v. Rosenberg et al., [1997] 3 S.C.R. 767; 219 N.R. 93; 104 O.A.C. 1, refd to. [para. 1297, footnote 463].

Citadel General Life Assurance Co. et al. v. Lloyds Bank of Canada et al., [1997] 3 S.C.R. 805; 219 N.R. 323; 206 A.R. 321; 156 W.A.C. 321, refd to. [para. 1297, footnote 464].

Air Canada v. M & L Travel Ltd., Martin and Vaillant, [1993] 3 S.C.R. 787; 159 N.R. 1; 67 O.A.C. 1, refd to. [para. 1297, footnote 465].

Northland Bank (Liquidation) et al. v. Willson et al. (1999), 249 A.R. 201 (Q.B.), refd to. [para. 1318, footnote 472].

Goodman Estate v. Geffen, [1991] 2 S.C.R. 353; 127 N.R. 241; 125 A.R. 81; 14 W.A.C. 81; 81 D.L.R.(4th) 211, refd to. [para. 1332, footnote 477].

Barclays Bank plc v. O'Brien et al., [1993] 4 All E.R. 417; 160 N.R. 214 (H.L.), refd to. [para. 1333, footnote 478].

Bank of Montreal v. Duguid (2000), 132 O.A.C. 106; 47 O.R.(3d) 737 (C.A.), leave to appeal granted (2000), 266 N.R. 199; 142 O.A.C. 398 (S.C.C.), refd to. [para. 1334, footnote 479].

Csada v. Csada, [1985] 2 W.W.R. 265; 35 Sask.R. 301 (C.A.), refd to. [para. 1339, footnote 483].

Krys v. Krys, [1929] S.C.R. 153, refd to. [para. 1347, footnote 486].

Noriah v. Omar - see Inche Noriah v. Shaik Allie Bin Omar.

Inche Noriah v. Shaik Allie Bin Omar, [1929] A.C. 127; 45 T.L.R. 1 (P.C.), refd to. [para. 1347, footnote 487].

Syncrude Canada Ltd. et al. v. Hunter Engineering Co. and Allis-Chalmers Canada Ltd. et al., [1989] 1 S.C.R. 426; 92 N.R. 1; 57 D.L.R.(4th) 321, refd to. [para. 1352, footnote 489].

Morrison v. Coast Finance Ltd. (1965), 55 D.L.R.(2d) 710 (B.C.C.A.), refd to. [para. 1353].

Mundinger v. Mundinger, [1969] 1 O.R. 606 (C.A.), affd. [1970] S.C.R. vi; 14 D.L.R.(3d) 256, refd to. [para. 1355, footnote 493].

Black v. Wilcox (1976), 12 O.R.(2d) 759 (C.A.), refd to. [para. 1355, footnote 494].

Fraser Jewellers (1982) Ltd. v. Dominion Electric Protection Co. et al. (1997), 101 O.A.C. 56; 34 O.R.(3d) 1 (C.A.), refd to. [para. 1356, footnote 495].

Gandalman Investments Inc. v. Fogle (1985), 22 D.L.R.(4th) 638 (Ont. H.C.), refd to. [para. 1371, footnote 498].

Novacrete Construction Ltd. v. Profile Building Supplies Inc. et al., [2000] O.T.C. Uned. 250; 7 B.L.R.(3d) 248 (Sup. Ct.), refd to. [para. 1372, footnote 499].

Sidaplex-Plastic Suppliers Inc. v. Elta Group Inc. et al. (1995), 131 D.L.R.(4th) 399 (Gen. Div.), varied (1998), 111 O.A.C. 106; 162 D.L.R.(4th) 367 (C.A.), refd to. [para. 1373, footnote 500].

GATX Corp. et al. v. Hawker Siddeley Canada Inc. et al. (1996), 1 O.T.C. 322; 27 B.L.R.(2d) 251 (Gen. Div.), refd to. [para. 1379, footnote 501].

Fulmer v. Fulmer (Peter D.) Holdings Inc. et al. (1997), 53 O.T.C. 127; 36 B.L.R.(2d) 257 (Gen. Div.), refd to. [para. 1381, footnote 502].

Benedetti et al. v. North Park Electronics (1997), 106 O.A.C. 230 (Div. Ct.), refd to. [para. 1383, footnote 503].

Naneff v. Con-Crete Holdings Ltd. et al. (1993), 11 B.L.R.(2d) 218 (S.C.), affd. (1994), 73 O.A.C. 334 (Div. Ct.), revd. in part (1995), 85 O.A.C. 29; 23 B.L.R.(2d) 286 (C.A.), refd to. [para. 1383, footnote 504].

Wittlin et al. v. Bergman et al. (1994), 19 O.R.(3d) 145 (Gen. Div.), varied (1995), 95 O.A.C. 372; 25 O.R.(3d) 761 (C.A.), refd to. [para. 1383, footnote 506].

Smith v. Red Green Productions III Inc. (1999), 95 O.T.C. 389 (Sup. Ct.), refd to. [para. 1384, footnote 507].

Di Nicola v. Pietrangelo et al. (1998), 81 O.T.C. 148 (Gen. Div.), refd to. [para. 1385, footnote 508].

Scottish Co-Operative Wholesale Society v. Meyer, [1958] 3 All E.R. 66 (H.L.), refd to. [para. 1390, footnote 511].

A Company, Re, [1986] 2 All E.R. 253 (Ch. D.), refd to. [para. 1390, footnote 512].

Jabalee v. Abalmark Inc., [1996] O.J. No. 2609 (C.A.), refd to. [para. 1391, footnote 513].

Jabaco Inc. v. Real Corporate Group Ltd., [1989] O.J. No. 68 (H.C.), refd to. [para. 1392, footnote 514].

Hercules Management Ltd. et al. v. Ernst & Young et al., [1997] 2 S.C.R. 165; 211 N.R. 352; 115 Man.R.(2d) 241; 139 W.A.C. 241; 146 D.L.R.(4th) 577, refd to. [para. 1393, footnote 515].

Foss v. Harbottle (1843), 67 E.R. 189 (Ch.), refd to. [para. 1393, footnote 516].

Walton v. Bank of Nova Scotia, [1965] S.C.R. 681, refd to. [para. 1394, footnote 518].

Mason v. Intercity Properties Ltd. (1986), 32 A.C.W.S.(2d) 366, varied (1987), 22 O.A.C. 161; 59 O.R.(2d) 631 (C.A.), refd to. [para. 1401, footnote 519].

Sahota et al. v. Basra et al. (1999), 93 O.T.C. 20; 45 B.L.R.(2d) 143 (Gen. Div.), refd to. [para. 1405, footnote 523].

M. v. H. (1993), 15 O.R.(3d) 721 (Gen. Div.), refd to. [para. 1405, footnote 525].

Such v. RW-LB Holdings Ltd. et al. (1993), 147 A.R. 241; 11 B.L.R.(2d) 122 (Q.B.), refd to. [para. 1405, footnote 528].

820099 Ontario Inc. v. Ballard (Harold E.) Ltd. (1991), 3 B.L.R.(2d) 113 (Gen. Div.), affd. (1991), 50 O.A.C. 254; 3 B.L.R.(2d) 113 (Div. Ct.), refd to. [para. 1411, footnote 535].

Ebrahimi v. Westbourne Galleries Ltd., [1972] 2 All E.R. 492 (H.L.), refd to. [para. 1411, footnote 536].

Diligenti v. RWMD Operations Kelowna Ltd. (1976), 1 B.C.L.R. 36 (S.C.), refd to. [para. 1413, footnote 538].

Abraham v. Inter Wide Investments Ltd. (1985), 51 O.R.(2d) 460 (H.C.), refd to. [para. 1418, footnote 541].

Wright v. Montgomery (Donald S.) Holdings Ltd. (1998), 51 O.T.C. 241; 39 B.L.R.(2d) 266 (Gen. Div.), refd to. [para. 1418, footnote 543].

Loveridge Holdings Ltd. v. King-Pin Ltd. (1991), 5 B.L.R.(2d) 195 (Ont. Gen. Div.), refd to. [para. 1418, footnote 543].

400280 Alberta Ltd. et al. v. Franko's Heating & Air Conditioning (1992) Ltd. et al., [1995] 4 W.W.R. 558; 166 A.R. 241 (Q.B.), refd to. [para. 1418, footnote 544].

Redekop v. Robco Construction Ltd. (1978), 7 B.C.L.R. 268 (S.C.), refd to. [para. 1418, footnote 544].

Ferguson v. Imax Systems Corp. (1983), 43 O.R.(2d) 128 (C.A.), refd to. [para. 1419, footnote 545].

Stech v. Davies (1987), 80 A.R. 298; 53 Alta. L.R.(2d) 373 (Q.B.), refd to. [para. 1428, footnote 549].

Westfair Foods Ltd. v. Watt et al. (1990), 106 A.R. 40; 48 B.L.R. 43 (Q.B.), affd. (1991), 115 A.R. 34; 79 D.L.R.(4th) 48 (C.A.), leave to appeal refused (1991), 137 N.R. 78; 127 A.R. 394; 20 W.A.C. 394; 85 D.L.R.(4th) viii (S.C.C.), refd to. [para. 1430, footnote 550].

Arthur v. Signum Communications Ltd., [1991] O.J. No. 86 (Gen. Div.), affd. [1993] O.J. No. 1928 (Div. Ct.), refd to. [para. 1433, footnote 552].

Jaska v. Jaska (1996), 141 D.L.R.(4th) 385 (Man. C.A.), refd to. [para. 1460, footnote 564].

Kupchak et al. v. Dayson Holdings Co. et al.; Dayson Holdings Co. v. Palms Motel Ltd. (1965), 53 D.L.R.(2d) 482 (B.C.C.A.), refd to. [para. 1478, footnote 568].

Clough v. London & North Western Railway Co. (1871), L.R. 7 Exch. 26, refd to. [para. 1479, footnote 569].

Ling Chi Medicine Co. (H.K.) v. Persaud (1998), 232 N.R. 61; 81 C.P.R.(3d) 369 (F.C.A.), refd to. [para. 1506, footnote 573].

Lyons Estate v. Whitworth (1987), 62 O.R.(2d) 602 (H.C.), refd to. [para. 1507, footnote 575].

K.M. v. H.M., [1992] 3 S.C.R. 6; 142 N.R. 321; 57 O.A.C. 321, refd to. [para. 1510, footnote 577].

Mobil Oil Canada Ltd. v. Shorthoaks (Rural Municipality), [1976] 2 S.C.R. 147; 5 N.R. 23, refd to. [para. 1524, footnote 580].

Lipkin Gorman v. Karpnale Ltd., [1991] 2 A.C. 548; 127 N.R. 380 (H.L.), refd to. [para. 1525, footnote 581].

Collins (Phillip) Ltd. v. Davis et al., [2000] 3 All E.R. 808, refd to. [para. 1526, footnote 582].

Lavigne v. Robern (1984), 6 O.A.C. 304; 51 O.R.(2d) 60 (C.A.), refd to. [para. 1618, footnote 621].

Peppiatt v. Nicol (1998), 71 O.T.C. 321 (Gen. Div.), refd to. [para. 1619, footnote 622].

Whiten v. Pilot Insurance Co. et al. (2002), 283 N.R. 1; 156 O.A.C. 201; 209 D.L.R.(4th) 257 (S.C.C.), refd to. [para. 1619, footnote 622].

Morrison v. Coast Finance Ltd. (1965), 55 D.L.R.(2d) 710 (B.C.C.A.), refd to. [para. 1625, footnote 628].

Knupp v. Bell (1968), 67 D.L.R.(2d) 256 (Sask. C.A.), refd to. [para. 1625, footnote 628].

McCarthy v. Kenny, [1939] 3 D.L.R. 556 (Ont. S.C.), refd to. [para. 1627, footnote 629].

Tilley v. Hails (1992), 7 O.R.(3d) 257 (Gen. Div.), varied (1992), 8 O.R.(3d) 169 (Div. Ct.), leave to appeal refused (1992), 9 O.R.(3d) 255 (S.C.C.), refd to. [para. 1629, footnote 630].

Main et al. v. Delcan Group Inc. (1999), 105 O.T.C. 27; 47 B.L.R.(2d) 200 (Sup. Ct.), refd to. [para. 1632, footnote 633].

Westmore v. Old MacDonald's Farms Ltd., [1986] B.C.J. No. 3006 (S.C.), refd to. [para. 1644, footnote 641].

SCI Systems Inc. v. Gornitzki Thompson & Little Co. et al. (1997), 29 O.T.C. 148; 147 D.L.R.(4th) 300 (Gen. Div.), varied (1998), 110 O.A.C. 160 (Div. Ct.), refd to. [para. 1646, footnote 643].

Flatley v. Algy Corp. et al., [2000] O.T.C. Uned. A25 (Sup. Ct.), refd to. [para. 1647, footnote 644].

O'Sullivan v. Management Agency & Music Ltd., [1985] 1 Q.B. 428 (C.A.), refd to. [para. 1649, footnote 646].

Soulos v. Korkontzilas et al., [1997] 2 S.C.R. 217; 212 N.R. 1; 100 O.A.C. 241; 146 D.L.R.(4th) 214, refd to. [para. 1650, footnote 647].

Chase Manhattan Bank N.A. v. Israel-British Bank (London) Ltd., [1891] Ch. 105, refd to. [para. 1652, footnote 649].

Kolari, Re (1981), 36 O.R.(2d) 473 (Dist. Ct.), refd to. [para. 1653, footnote 650].

Hill v. Church of Scientology of Toronto and Manning, [1995] 2 S.C.R. 1130; 184 N.R. 1; 84 O.A.C. 1; 126 D.L.R.(4th) 129, refd to. [para. 1657, footnote 655].

Clairborne Industries Ltd. v. National Bank of Canada - see Claiborne Industries Ltd. et al. v. National Bank of Canada et al.

Claiborne Industries Ltd. et al. v. National Bank of Canada et al. (1989), 34 O.A.C. 241; 69 O.R.(2d) 65 (C.A.), refd to. [para. 1659, footnote 658].

Meinhard v. Salmon (1928), 249 N.Y. 458 (Ct. App.), refd to. [para. 1672, footnote 666].

Beatty v. Guggenheim Exploration Co. (1919), 225 N.Y. 380 (Ct. App.), refd to. [para. 1672, footnote 667].

Posluns v. Toronto Stock Exchange (1964), 46 D.L.R.(2d) 210 (Ont. H.C.), affd. (1965), 53 D.L.R.(2d) 193 (Ont. C.A.), affd. (1968), 67 D.L.R.(2d) 165 (S.C.C.), refd to. [para. 1766, footnote 695].

Truckers Garage Inc. v. Krell (1993), 68 O.A.C. 106 (C.A.), refd to. [para. 1768, footnote 697].

Stratford (J.T.) & Son Ltd. v. Lindley, [1965] A.C. 269; [1964] 3 All E.R. 102 (H.L.), refd to. [para. 1771, footnote 698].

131843 Canada Inc. v. Double "R" (Toronto) Ltd., [1991] O.J. No. 2015 (Gen. Div.), refd to. [para. 1771, footnote 699].

Royal Bank of Canada v. Wilton (1995), 165 A.R. 261; 89 W.A.C. 261; 123 D.L.R.(4th) 266 (C.A.), leave to appeal refused (1995), 195 N.R. 160; 181 A.R. 80; 116 W.A.C. 80 (S.C.C.), refd to. [para. 1772, footnote 700].

Thomson (D.C.) & Co. v. Deakin, [1952] Ch. 646, refd to. [para. 1774, footnote 702].

Fabbi v. Jones (1972), 28 D.L.R.(3d) 224 (S.C.C.), refd to. [para. 1777, footnote 704].

Potechin v. Yashin et al., [2000] O.T.C. 346 (Sup. Ct.), refd to. [para. 1778, footnote 705].

Gainers Inc. v. Pocklington Holdings Ltd. (2000), 255 A.R. 373; 220 W.A.C. 373; 194 D.L.R.(4th) 109 (C.A.), refd to. [para. 1779, footnote 706].

ADGA Systems International Ltd. v. Valcom Ltd. et al. (1999), 117 O.A.C. 39; 168 D.L.R.(4th) 351 (C.A.), leave to appeal refused (1999), 254 N.R. 400; 134 O.A.C. 400 (S.C.C.), refd to. [para. 1806, footnote 718].

Walker v. Symonds (1818), 3 Swans 1, refd to. [para. 2122].

Regal Hastings Ltd. v. Gulliver, [1942] 1 All E.R. 378 (H.L.), refd to. [para. 2123].

Canadian Aero Services Ltd. v. O'Malley (1973), 40 D.L.R.(3d) 371 (S.C.C.), refd to. [para. 2126].

Molchan v. Omega Oil and Gas Ltd. (1988), 83 N.R. 25; 87 A.R. 81; 47 D.L.R.(4th) 481 (S.C.C.), refd to. [para. 2127].

Boucher v. Kennedy et al. (1998), 60 O.T.C. 137 (Gen. Div.), affd. (1999), 124 O.A.C. 151 (C.A.), refd to. [para. 2130].

Burg v. Horn (1967), 380 F.2d 897 (2nd Cir.), refd to. [para. 2131].

Walton v. Bank of Nova Scotia (1965), 52 D.L.R.(2d) 506 (S.C.C.), refd to. [para. 2133].

Teddy Bear Valley Mines, Re (1993), 1 C.C.L.S. 97 (Ont. Gen. Div.), refd to. [para. 2143].

Bardal v. Globe & Mail Ltd. (1960), 24 D.L.R.(2d) 140 (Ont. H.C.), refd to. [para. 2194].

Wallace v. United Grain Growers Ltd., [1997] 3 S.C.R. 701; 219 N.R. 161; 123 Man.R.(2d) 1; 159 W.A.C. 1; 152 D.L.R.(4th) 1, refd to. [para. 2195].

Lazarowic v. Orenda Engines Ltd., [1961] O.R. 141 (C.A.), refd to. [para. 2195].

Woodglen & Co. et al. v. Owens et al. (1996), 19 O.T.C. 81; 6 R.P.R.(3d) 259 (Gen. Div.), affd. (1999), 126 O.A.C. 103 (C.A.), refd to. [para. 2284, footnote 888].

Davey v. Woolley et al. (1982), 35 O.R.(2d) 599 (C.A.), refd to. [para. 2286, footnote 890].

Ridge View Development & Holding Co. v. Simper, [1989] 5 W.W.R. 133; 95 A.R. 282 (Q.B.), refd to. [para. 2291, footnote 892].

Clarence Construction Ltd. v. Lavallee (1980), 111 D.L.R.(3d) 582 (B.C.S.C.), affd. (1981), 132 D.L.R.(3d) 153 (B.C.C.A.), refd to. [para. 2299, footnote 895].

Commerce Capital Trust Co. v. Berk (1989), 33 O.A.C. 373; 68 O.R.(2d) 257 (C.A.), refd to. [para. 2303, footnote 897].

Central Trust Co. v. Rafuse and Cordon, [1986] 2 S.C.R. 147; 69 N.R. 321; 75 N.S.R.(2d) 109; 186 A.P.R. 109; 31 D.L.R.(4th) 481, refd to. [para. 2309, footnote 900].

120 Adelaide Leaseholds Inc. v. Thomson, Rogers (1995), 43 R.P.R.(2d) 79 (Ont. Gen. Div.), refd to. [para. 2310, footnote 901].

Major v. Buchanan (1976), 9 O.R.(2d) 491 (H.C.), refd to. [para. 2311, footnote 902].

Sykes v. Midland Bank Executor and Trustee Co., [1970] 2 All E.R. 471 (C.A.), refd to. [para. 2311, footnote 903].

Roman Corp. v. Peat Marwick Thorne (1992), 11 O.R.(3d) 248 (Gen. Div.), refd to. [para. 2436, footnote 962].

Caparo Industries v. Dickman et al., [1990] 1 All E.R. 568; 108 N.R. 81 (H.L.), refd to. [para. 2437, footnote 963].

Anns v. Merton London Borough Council, [1978] A.C. 728; [1977] 2 W.L.R. 1024; [1977] 2 All E.R. 492 (H.L.), refd to. [para. 2441, footnote 965].

R. v. Rockey (S.E.), [1996] 3 S.C.R. 829; 204 N.R. 214; 95 O.A.C. 134; 140 D.L.R.(4th) 503, refd to. [para. 2621].

R. v. Khan, [1990] 2 S.C.R. 531; 113 N.R. 53; 41 O.A.C. 353, refd to. [para. 2625].

R. v. Smith (A.L.), [1992] 2 S.C.R. 915; 139 N.R. 323; 55 O.A.C. 321; 94 D.L.R.(4th) 590, refd to. [para. 2625].

R. v. W.J.F. (1999), 247 N.R. 62; 180 Sask.R. 161; 205 W.A.C. 161; 178 D.L.R.(4th) 53 (S.C.C.), refd to. [para. 2652].

R. v. Hawkins (K.R.) and Morin (C.), [1996] 3 S.C.R. 1043; 204 N.R. 241; 96 O.A.C. 81; 141 D.L.R.(4th) 193, refd to. [para. 2653].

R. v. Hart (W.A.) (1999), 174 N.S.R.(2d) 165; 532 A.P.R. 165; 135 C.C.C.(3d) 377 (C.A.), refd to. [para. 2665].

Castlerigg Investments Inc. v. Lam (1991), 2 O.R.(3d) 216 (Gen. Div.), refd to. [para. 2681].

Schmuck v. Reynolds-Schmuck, [1999] O.T.C. Uned. 677; 46 O.R.(3d) 702 (Sup. Ct.), refd to. [para. 2681].

Boscawen v. Bajwa, [1995] 4 All E.R. 769 (C.A.), refd to. [para. 2684].

Foskett et al. v. McKeown et al., [2000] 3 All E.R. 97; 257 N.R. 294 (H.L.), refd to. [para. 2692].

First Choice Capital Fund Ltd. et al. v. First Canadian Capital Corp. et al., [1997] Sask.R. Uned. 117; 11 C.P.C.(4th) 305 (Q.B.), refd to. [para. 2694].

Mercantile Group (Europe) A.G. v. Aiyela et al., [1994] 1 All E.R. 110 (C.A.), refd to. [para. 2707].

Chase Manhattan Bank N.A. v. Israeli-British Bank (London) Ltd., [1981] 1 Ch. 105, refd to. [para. 2707].

Diplock Estate, Re, [1948] 2 All E.R. 318 (H.L.), refd to. [para. 2710].

Bankers Trust Co. v. Shapira, [1980] 3 All E.R. 353 (C.A.), refd to. [para. 2716].

Gold Chance International Ltd. v. Daigle & Hancock, [2000] O.T.C. Uned. 476 (Sup. Ct.), refd to. [para. 2718].

Alberta (Treasury Branches) v. Ghermezian - see Alberta (Treasury Branches) v. Leahy et al.

Alberta (Treasury Branches) v. Leahy et al. (2000), 270 A.R. 1 (Q.B.), affd. (2002), 303 A.R. 63; 273 W.A.C. 63 (C.A.), refd to. [para. 2720].

Mooney v. Orr (1994), 33 C.P.C.(3d) 31 (B.C.S.C.), refd to. [para. 2724].

Citadel General Life Assurance Co. et al. v. Lloyds Bank of Canada et al., [1997] 3 S.C.R. 805; 219 N.R. 323; 206 A.R. 321; 156 W.A.C. 321, refd to. [para. 2739].

Statutes Noticed:

Business Corporations Act, R.S.O. 1990, c. B-16, sect. 248 [para. 1369].

Authors and Works Noticed:

Boyle and Percy, Contracts: Cases and Commentaries (4th Ed. 1989), pp. 637, 638 [para. 1357, footnote 497].

Bryan, M., The Receipt-Based Constructive Trust: A Case Study of Personal and Proprietary Restitution in the Supreme Court (1999), 37 Alta. L. Rev. 73, pp. 81 [para. 1622, footnote 624]; 87 [para. 1305, footnote 471]; 89, 90 [para. 1622, footnote 90].

Campbell, I.R., Low, R. and Murrant, N.V., The Valuation and Pricing of Privately Held Business Interests (1990), p. 316 [para. 1554, footnote 593].

Campion, J., Brown, S. and Crawley, A., The Oppression Remedy: Reasonable Expectations of Shareholders (1995), L.S.U.C. Special Lectures 1995 -- Law of Remedies, p. 233 [para. 1406, footnote 529].

Davidson, I.E., The Equitable Remedy of Compensation (1982), 13 Melbourne University L. Rev. 349, p. 354 [para. 1648, footnote 645].

Dickson, R. et al., Proposals for a New Business Corporations Law for Canada (1971), para. 482 [para. 1393, footnote 517].

Driedger, Elmer A., Construction of Statutes (3rd Ed. 1994), pp. 512 to 515 [para. 1403, footnote 521].

Ellis, M., Fiduciary Duties in Canada (2000), paras. 1-6 [para. 1265, footnote 459]; 20-

6.1 [para. 1617, footnote 620]; 20-6.2 [para. 2690]; 20-10 [para. 2755]; 20-14.2 [paras. 1653, 2727, footnote 651]; 20-31 [para. 1658, footnote 657]; 20-32 [para. 1619, footnote 622].

Ellis, M., Fiduciary Duties in Canada (2002 Release 2), para. 20-9 [para. 2755].

Fridman, Gerald Henry Louis, The Law of Contract in Canada (4th Ed. 1999), pp. 317 [para. 1519, footnote 579]; 864 [para. 1476, footnote 567].

Gardner, Simon, Knowing Assistance and Knowing Receipt: Taking Stock (1996), 112 L.Q.R. 56, pp. 77, 78 [para. 1298, footnote 466]; 85 [para. 1301, footnote 468].

Gautreau, J.R.M., Demystifying the Fiduciary Mystique (1989), 68 Can. Bar Rev. 1, pp. 13, 18, 19 [para. 2284, footnote 889].

Gower, Modern Company Law, p. v [para. 1393, footnote 517].

Halsbury's Laws of England (4th Ed. 1992), vol. 16, p. 831, para. 927 [para. 1512, footnote 578].

MacIntosh, Jeffrey G., The Oppression Remedy: Personal or Derivative (1991), 70 Can. Bar Rev. 29, p. 36ff [para. 1390, footnote 510].

MacIntosh, Jeffrey G., The Retrospectivity of the Oppression Remedy (1987-88), 13 C.B.L.J. 219, p. 226 [para. 1402, footnote 520].

Maddaugh, P.D. and McCamus, J.D., The Law of Restitution (1990), pp. 35 to 38 [para. 1668, footnote 663].

Oakley, A.J., Constructive Trusts (3rd Ed. 1997), pp. 5 [para. 1670, footnote 664]; 9 [para. 1655, footnote 654]; 12 [para. 2686]; 39 [para. 1624, footnote 627].

Ogilvie, M., Undue Influence in the House of Lords (1986), 11 Can. Bus. L.J. 503, 511 [para. 1332].

Perell, Paul, Intermeddlers or Strangers to the Breach of Trust of Fiduciary Duty (1999), 21 Adv. Q. 94, pp. 106, 107, 108 [para. 1321, footnote 474]; 110 [para. 1305]; 115 [para. 1302, footnote 469]; 116 [para. 1623, footnote 626].

Peterson, D., Shareholder Remedies in Canada (2000) (Looseleaf), paras. 18.48, 18.49 [para. 1418, footnote 542]; 18.101.3, rel. 44 [para. 1468, footnote 565]; 18.101.4 [para. 1468, footnote 566].

Smith, L., Tracing in Taylor v. Plumer: Equity in the Court of King's Bench, [1995] L.M.C.L.Q. 240, generally [para. 1654, footnote 653].

Smith, Lionel, Whither Knowing Receipt (1998), 114 Law Q. Rev. 394 [para. 1621, footnote 623].

Snell's Principles of Equity (30th Ed. 2000), p. 31 [para. 1505, footnote 572].

Ulmer, Karen C., Business Issues: The Oppression Remedy (1989), 53 Sask. L. Rev. 209, pp. 215 to 218 [para. 1427, footnote 548].

Vestal, Allan W., Ask No Questions and I'll Tell You No Lies: Statutory and Common Law Disclosure Requirements Within High Tech Joint Ventures (1991), 65 Tulane Law Rev. 705, pp. 728, 729, 730 [para. 1268, footnote 460]; 731 [para. 1269].

Waters, Donovan, Banks, Fiduciary Obligations and Unconscionable Transactions (1986), 65 Can. Bar Rev. 37, pp. 48, 49 [para. 1351, footnote 488].

Welling, Corporate Law in Canada: The Governing Principles (2nd Ed. 1991), pp. 407 to 416 [para. 2131].

Counsel:

Robert S. Harrison and Richard B. Swan, for the plaintiffs/defendants to counterclaim;

Alan Lenczner and Lorne Silver, for the defendants/plaintiffs by counterclaim;

Barbara Murchie and Trent Horne, for the defendants in action 42114/89;

Frank Bowman and Chris Hluchan for the defendant, Taylor Leibow;

Alan Lenczner and Lorne Silver for the defendants, Wayne Linton and I. Waxman & Sons Limited in action 44142/89.

This action was heard on December 7, 1998, December 18, 2000, July 30 and August 15, 2002, by Sanderson, J., of the Ontario Superior Court, who released the following decision on June 27, 2002 and supplementary reasons on September 14 and 16, 2002.

Please note: The following judgment has not been edited.